Leland budget would cut fees, waive tax on businesses

Published: Thursday, May 16, 2013 at 9:34 p.m.

Last Modified: Thursday, May 16, 2013 at 9:34 p.m.

Leland Town Manager David Hollis and his staff want to make some serious tweaks to the town's revenue sources to, they hope, encourage growth.

Introducing Leland's 2013-14 budget during the town council's regular meeting on Thursday, Hollis proposed dropping building permit and inspection fees within the town to $1 apiece and waiving the town's privilege license tax for small businesses.

"It'll hopefully spur growth in this town," he said. "We can do this and we have a balanced budget. We can do this and not hurt services and keep revenues where they are, the sales and use tax and the property values have grown that much."

Leland also will be able to avoid raising taxes, even as it cuts the fees and waives the privilege license tax.

A major reason for the building tax and inspection proposal was to encourage annexation of property that sits just outside of the town's borders.

During fiscal year 2012, the town raised about $626,000 via building inspection fees, but staff members are confident they'll be able to regain the money in about six years by bringing money in through sales and property taxes. The town estimates it will earn about $26,000 from building inspections during fiscal year 2013-14.

"I think we can overcome the loss of that revenue and treat it as an investment in our future. We really want the town to grow, we really want the areas around the town to join us and that's one way I think we can do that," Hollis said.

Thursday's meeting marked the first time Mayor Brenda Bozeman heard of the proposed fee cuts, but she was on board with the changes.

Another way the town hopes to grow is by waiving the special privilege license tax, which officials hope they can use to attract and support more small businesses.

The town estimates it will earn about $65,000 from the privilege license tax during fiscal year 2013-14, down about $50,000 from fiscal year 2012-13.

At first blush, Bozeman also was supportive of waiving the special privilege license tax.

"What better way to get a business to come into town than to take away an expense they'd have to pay at startup?" Bozeman said.

The town will discuss its budget in more detail during a special meeting at 6 p.m. June 3 at Leland Town Hall.

<p><a href="http://www.starnewsonline.com/section/topic9971"><b>Leland</b></a> Town Manager David Hollis and his staff want to make some serious tweaks to the town's revenue sources to, they hope, encourage growth.</p><p>Introducing Leland's 2013-14 budget during the town council's regular meeting on Thursday, Hollis proposed dropping building permit and inspection fees within the town to $1 apiece and waiving the town's privilege license tax for small businesses.</p><p>"It'll hopefully spur growth in this town," he said. "We can do this and we have a balanced budget. We can do this and not hurt services and keep revenues where they are, the sales and use tax and the property values have grown that much."</p><p>Leland also will be able to avoid raising taxes, even as it cuts the fees and waives the privilege license tax.</p><p>A major reason for the building tax and inspection proposal was to encourage annexation of property that sits just outside of the town's borders. </p><p>During fiscal year 2012, the town raised about $626,000 via building inspection fees, but staff members are confident they'll be able to regain the money in about six years by bringing money in through sales and property taxes. The town estimates it will earn about $26,000 from building inspections during fiscal year 2013-14.</p><p>"I think we can overcome the loss of that revenue and treat it as an investment in our future. We really want the town to grow, we really want the areas around the town to join us and that's one way I think we can do that," Hollis said.</p><p>Thursday's meeting marked the first time Mayor Brenda Bozeman heard of the proposed fee cuts, but she was on board with the changes.</p><p>Another way the town hopes to grow is by waiving the special privilege license tax, which officials hope they can use to attract and support more small businesses.</p><p>The town estimates it will earn about $65,000 from the privilege license tax during fiscal year 2013-14, down about $50,000 from fiscal year 2012-13.</p><p>At first blush, Bozeman also was supportive of waiving the special privilege license tax.</p><p>"What better way to get a business to come into town than to take away an expense they'd have to pay at startup?" Bozeman said.</p><p>The town will discuss its budget in more detail during a special meeting at 6 p.m. June 3 at Leland Town Hall.</p><p><i></p><p>Adam Wagner: 343-2096</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @AdamWagner1990</i></p>